Bralirwa Ltd will reward its shareholders with higher dividends this week after recording significant growth in profits last year.

Investors will receive Rwf16.90 ($0.020) per share, to be paid on Friday June 29.

This represent a 20.4 per cent increase per share in comparison with the Rwf20.09 paid out in 2010.

Bralirwa’s share — after the country’s first initial public offering — has continued to generate strong interest since its listing in January 2011. Its share price has surged from $0.22 to $0.57 as of Tuesday last week.

Analysts say though Bralirwa’s 100 per cent net income dividend pay out is company policy; it is a strong incentive to investors as it gives a positive signal about the company’s future.

“Retail investors feel good if they are paid part of their returns in dividends. But most important is the positive signalling effect,” said Iza Irame, the general manager of African Alliance Rwanda Ltd.

Bralirwa, which is 75 per cent owned by Dutch brewing giant Heineken International, recorded a net profit growth of 42 per cent on account of higher pricing, higher volumes and aggressive marketing.

It recorded a net profit of Rwf14.7 billion ($24 million) in 2011 after recording a volume growth of 16.3 per cent mainly driven by its beer brands Primus, Mutzig, Turbo King and Heineken beer brands.

Bralirwa’s managing director said recently that the company expects to experience further growth in the beverage market in 2012.

Bralirwa also plans to replace its current soft drinks line dominated by Coca Cola products which it manufactures under licence.

Coca Cola brands include Coca Cola, Fanta Orange and Fanta Citron, Fanta Fiesta, Sprite, Krest Tonic manufactured under license and Vital’O, its own brand.

However, early this year, the brewer increased prices for soft drinks, citing increased transportation and raw materials costs.